Gold supported by weak US wage growth figures

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Mar 4, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    Gold fell in a knee-jerk reaction to strong US non-farm payrolls number, but quickly recovered from near $1250 levels on the back of a drop in wage growth.

    Back above monthly 100-MA

    Prices currently trade above $1263 (monthly 100-MA) levels. The metal clocked a fresh 13-month high of $1274.79 in Europe, but the bulls had loosened their grip heading into the data release, making way for a fall back to $1263 levels.

    The payrolls figure printed way above estimates and carried strong upward revisions to the previous two month’s figure. Consequently, prices dipped to $1249.50.

    However, average hourly earnings printed at -0.1% m/m and 2.2% y/y; both missing the estimates. Hence, the metal managed to take back losses. Still, gold bulls’ jets appear to have been cooled by strong payrolls figure.

    Gold Technical Levels

    The immediate hurdle is seen at 1285.80 (Feb 1 high), above which the prices could test the psychological level of $1300. On the other hand, a failure to sustain above the daily low of $1249.50 would open doors for a re-test of support of the multiple daily highs seen on the daily chart seen around $1240.
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